PERTH (miningweekly.com) – Gold miner Northern Star Resources' A$140-million commitment to exploration over the last 12 months has paid off, with the miner reporting that group mineral resources had remained stable at 56.4-million ounces, despite mining depletion and portfolio optimisation.
Northern Star on Tuesday reported growth of 4.3-million ounces from exploration success over the last 12 months, including a 1.1-million-ounce maiden mineral resource at the Goodpaster deposit, at its Pogo mine, in Alaska.
The resource estimate also included a reduction of 2.4-million ounces following the A$400-million divestment of the Kundana assets to fellow listed gold miner Evolution Mining in August of last year.
“Our ongoing exploration success highlights the significant opportunity that exists within our Tier-1 asset portfolio to grow the gold resource base, particularly through the extension of known mineralisation at depth at Kalgoorlie Consolidated Gold Mines. We continue to focus our exploration efforts on extending mine lives and developing our three production centres,” said Northern Star MD Stuart Tonkin.
“Despite a challenging year for drilling and assaying capability, Pogo achieved a 20% increase in ore reserves at a higher grade and declared a maiden mineral resource at Goodpaster reinforcing the enormous growth potential of Pogo.
“Our substantial Mineral Resource base in world-class jurisdictions is what enables Northern Star to stand out in the marketplace. We will continue to explore aggressively and effectively to unlock the enormous potential within, around and below our existing operations. This further supports the replacement of ore reserves in coming years.
“Our conservative gold price assumptions combined with our underground mining portfolio provide optionality in a supportive gold price environment to optimise cash flow and shareholder returns as well as ensure downside protection,” said Tonkin.